Monetary policy glossary

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P

pension fund
A provision or similar funds set aside by non-financial corporations to pay for their employees' pensions.
post-fixed coupon
A coupon on floating rate instruments which is determined on the basis of the values taken by the reference index at a certain date (or dates) during the coupon accrual period.
PPP
See
purchasing power parity (PPP)
pre-fixed coupon
A coupon on floating rate instruments which is determined on the basis of the values taken by the reference index at a certain date (or dates) before the start of the coupon accrual period.
price stability
The primary objective of the Eurosystem, which has been defined by the Governing Council as a year-on-year increase in consumer prices (as measured by the HICP) for the euro area that is below but close to 2% over the medium term.
projections
See
Eurosystem staff projections
purchasing power parity (PPP)
The rate used for the conversion of one currency into another that equalises the purchasing power of the two currencies by eliminating the differences in the price levels prevailing in the countries concerned. In their simplest form, PPPs show the ratio of the prices in national currency of the same good or service in different countries.